New York:
United Airlines said on Wednesday that it could fire up to 36,000 workers on October 1 as the American carrier fights for survival amid the coronavirus crisis.
The major American airline has stressed that it must cut costs due to a sharp drop in demand for air travel, but although it will inform front-line workers of the potential job cuts, it does not do not expect everyone who receives the notice to be put on leave.
“The reality is that United simply cannot continue at its current pay level after October 1 in an environment where travel demand is so depressed,” said a memo issued by the company.
The level of layoffs is estimated to represent nearly 38 percent of United’s total workforce at the end of March.
United does not expect travel to normalize “until there is a widely available treatment or vaccine” for COVID-19, the memo said.
“Involuntary leave occurs as a last resort, after months of cutting costs and raising capital across the enterprise.”
United is targeting 15,100 layoffs in flight services and 2,250 pilots. The other groups concerned include catering, airport operations and technical operations.
The company extended a deadline for a voluntary departure program until July 15 and said it was “hopeful” that the program would reduce the number of involuntary departures.
United also said it was in talks with unions “on creative ways to help cut time off.”
Faced with sharp drops in revenue, the main American airlines have delayed orders for new planes, removed old planes and immobilized a large part of their fleet in an attempt to limit consumption of cash.
As part of the Cares Act relief program for airlines, United received $ 5 million in payroll assistance and loans, but under the program, it can only lay off workers after 30 September.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)